City of Subiaco issues ultimatum to City of Perth over outstanding debt

SUBIACO Council has issued an ultimatum to the City of Perth to pay an outstanding debt of $500,000 or the matter will be taken to the Local Government Minister.

On Tuesday night, Subiaco councillors voted unanimously to give Perth a June 30 deadline for settling the debt.

Councillors voted 10-1 not to discuss the Bruce Family Trust Land with the City of Perth until the outstanding debt was paid.

Cr Mark Burns said he took issue with the City of Perth characterising the $500,000 as an “ex gratia” payment.

“That suggests it is a gift; it is a debt,” he said.

Subiaco staff had recommended that the council agree to the development of a joint trust document with the City of Perth for the Bruce Family Trust Land “with the objective to ensure” the lots are held in perpetuity for public use as per the existing trust document with Subiaco.

Cr Burns said the value of the land could be as much as $90 million.

This resolution was rejected in favour of suspending discussion of the Trust until Perth pays its debt to Subiaco arising from the City of Perth Act boundary changes.

Perth chief executive Martin Mileham said the City was seeking to work with Subiaco to reach a final agreement regarding the boundary amendment process.

“This includes the protection of the Bruce Family Trust Land for the benefit of residents and visitors, in perpetuity, to this important public open space,” Mr Mileham said.

“Negotiations about management of the land adjoining JH Abrahams Reserve are ongoing and an agreement determined once this matter is resolved.”